Regulatory Alerts2025-12-05
Securities and Exchange Board of India (Merchant Bankers) (Amendment) Regulations, 2025
The Securities and Exchange Board of India (SEBI) issued the 2025 Amendment Regulations to overhaul the regulatory framework for merchant bankers, introducing a two-tier registration system (Category I and II) with distinct capital adequacy and liquid asset requirements. The regulations expand the scope of permissible activities, mandate strict data localization, and impose stringent conflict-of-interest restrictions, including prohibitions on acting as lead managers for issuers where significant ownership or familial ties exist. Furthermore, the amendments redefine key definitions, update compliance officer requirements, and establish specific minimum income thresholds to ensure the financial stability and professional integrity of merchant banking entities.